Systems and methods for generating and using trade areas associated with business branches based on correlated demographics

Abstract

Methods and systems are provided for determining and using market areas associated with one or more branches of a business. Market areas are determined using a combination of deterministic and probabilistic techniques. Distances are calculated between customers and associated branches and a convex hull formed containing the closest 60%. A block and a tightened block is formed of dissemination areas contained within the convex hull. Where blocks are shared between branches, dissemination areas are weighted according to the portion of customers associated with each branch.

Description

FIELD OF THE INVENTION[0001]This invention relates to generating reports on trade areas. In particular it relates to analyzing customers and potential customers surrounding a location to determine market profile and opportunity.BACKGROUND OF THE INVENTION[0002]For businesses based on physical retail operation, success of the business depends in part on the customers who live or work in the vicinity and frequent the operation.[0003]Retail or service operations generally refers to businesses, business branches, franchises or, service providers, that are based around a physical location, such as a store, branch, outlet, office or other entity as defined by the business or operator. Customers visit the location to purchase goods and / or receive services from the business.[0004]Since the business generally depends on people visiting the physical location, the business is often interested in information about the people who live or work in the area around the location. This information may...

AI Technical Summary

Benefits of technology

This patent is about a method for analyzing trade areas around physical retail locations. The method involves using customer data and other factors to define the area around a location where a business operates. This information can be used to target customers and potential customers, and to compare different locations and measure productivity. The patent describes several methods for defining trade areas, including user-defined market areas, circle market areas, and probability-based approaches. The methods are designed to help businesses better understand their customers and the market they operate in, and to improve their decision-making and customer profiling.

Problems solved by technology

The major flaw of this approach is that it is highly unconstructed and therefore subjective.

The potential for inconsistency and error increases in relation to the number of locations within the business and the variety of their types and market settings.

These conditions are not often met and as a result the circle market areas are not a particularly good reflection of the actual retail environment for most retail businesses.

This method creates market areas which completely fill the map and do not allow any overlap between regions.

These conditions are rarely met within the retail and service environment.

Therefore it is not possible to find areas of higher or lower interaction.

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